PROCTER & GAMBLE announced on Thursday that it will cut 7,000 jobs, or about 6% of its workforce over the next two years, as part of a new restructuring plan that comes in an irregular demand environment and higher costs generated by the trade war.
The world’s largest consumer goods company also plans to abandon some product and brands categories in certain markets, executives said at a Deutsche Bank conference in Paris, adding that the new plan can probably include some divestments without giving details.
The company’s restructuring plan occurs at a time when consumer spending is expected to remain under pressure this year. In addition, global consumer goods manufacturers, including P&G and Unilever, prepare for a new impact on demand due to inflation.
“This is not a new approach, but an intentional acceleration of the current strategy … to win in the increasingly challenging environment in which we competed,” executives said.
P&G added that the restructuring plan will help simplify organizational structure, “making functions wider” and “smaller teams”.
The company had about 108,000 employees on June 30, 2024 and said job cuts will represent about 15% of its non -industrial workforce.
Selling plans for certain brands will also help adjust the supply chain in order to reduce costs, P&G said.
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Import rates announced by US President Donald Trump shook global markets and generated fears of a recession in the country, the largest market for R&G. The company imports gross ingredients, packaging materials and some finished products from China to the US.
Trump’s trade war cost companies more than $ 34 billion in lost sales and higher costs, according to Reuters analysis, a value that should increase.
